High Inventories Likely to Keep Indian Billet Export Offers Under Pressure

The SE Asian billet import market reported dull this week. No deals were reported this week. The SteelMint analyzed the dim-witted situation in the region and learned; there is disparity between the offers and the buying interest, which has left the SE Asian market with no deals.

The SteelMint further learnt that disparity is being created by some of the leading billet producers from India, which are trying to compete with Iranian billet. If sources to be believed, every prime billet manufacturer have given the impression that India is having surplus of billets over high inventories amid dull domestic demand and they can match the prices with Iranian billets. Current offers from Indian to SE Asia are reported to be USD 420-425/MT, CFR. While other majors are offering USD 430-435/MT, CFR.

Billet export offers from CIS witness a sharp drop- This week billet export assessment from CIS nations stands at USD 385-390/MT, FoB Black Sea, down USD 15 against last week. The market sentiments were reported weak in the region.

Vietnam billet offers - This week Vietnam’s domestic billet offers are at USD 450/MT, identical as last week. Amid lower prices in exports, mills were heard preferring billets in domestic market. The marketers believe, they cannot compete with Indian origin billets and hence focusing on the domestic market.

Turkey imported scrap prices fall further - The global ferrous scrap market has witnessed downtrend in almost all major markets this week. Turkey imported SCRAP prices at 2-years low. HMS (80:20) European origin at USD 270/t, CFR Turkey.